Cloud Computing Investment to Reach $191Bn by 2020

By CIOReview | Friday, April 25, 2014
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FREMONT, CA: Cloud Computing market is forecasted to reach $191Bn by 2020, reveals a recent report from Forrester Research. Formidable growth fueled by increasing adoption holds great promise for SaaS.

The cloud market has risen from $58Bn in 2013 to $72Bn in 2014. In future, SaaS software will amount to 25 percent of the total of $523Bn of total software application purchases. Spending on server and storage hardware for cloud-based data centers will amount to around 19 percent of the $230Bn spent on the overall hardware for data centers, according to Forrester. Organizations are setting aside their security concerns about cloud and more businesses are mulling their approach towards adopting cloud. Analysts have observed that cloud computing is experiencing “hypergrowth.”

James Staten, an analyst from Forrester mentions in his blog that cloud computing has entered into ‘second stage’ where it has transitioned from exploration of cloud to rationalization. Major revenue generator has been the SaaS model that amounts to $36Bn in 2013, considering it’s a more mature and well established across the business sectors.  This model is expected to play significant role in sales force automation, customer relationship management, human resource management, procurement and purchasing.

Public cloud services – equipped with agile architecture and mobility-driven solutions for database and storage – will surge ahead in empowering organizations to scale up their overall working model. Shared consumption and pay-as-you-use model further drive the prospects of cloud implementation. The continued proliferation of cloud services coupled with reduction in charges for cloud services also add to the cloud growth prospects.